Investment Case
Elementis is a business-to-business specialty chemicals company, offering performance driven additives for consumer and industrial applications. Our integrated business model, combined with our technology and market leading formulation capabilities and the continuous improvement focus, supports margin enhancement and drives returns. We re-invest in our business to expand our capabilities, so we can continue to meet the requirements of our customers and generate long term sustainable growth and stakeholder returns.
Premium assets
Our California based mine is the largest high-quality hectorite mine in the world, with substantial reserves of white coloured hectorite. We also own significant deposits of high-quality talc in Finland. Our vertically-integrated model utilises our natural mineral resources which, combined with our technology and market leading formulation capabilities, creates unique product sets and compelling competitive advantages.
Hectorite: >50 years of estimated resource life.
Talc: >90 years of estimated resource life.
Two attractive, resilient businesses
Focused on market segments with structural growth opportunities, supported by industry trends.
Personal Care: 42% of Group operating profit1.
Performance Specialties: 58% of Group operating profit1.
1: FY 2023, pre-central costs.
Customer centric and innovation focus
A leading supplier of specialty chemicals, we leverage our capabilities in rheology, surface chemistry and formulation to solve our customers’ formulation challenges. Through our key account partnerships, we develop customised solutions and provide ongoing technical support, adding further value to our customers.
28 joint development projects.
Global reach
Our manufacturing and R&D capabilities in key regions allow us to serve customers globally and provide supply chain resilience.
17 manufacturing plants and seven technology centres across four continents.
Sustainable solutions
We combine our expertise in natural clay and talc minerals with bio-based molecules to create more sustainable solutions for our customers. We take pride in our extensive portfolio of natural products and sustainable formulation concepts, meeting consumer needs while minimising our, as well as our customers’, environmental impact.
68% revenue from natural products classed as natural or naturally derived.
Strong cash generation
Our strong cash generation, alongside our Innovation, Growth and Efficiency strategy, support re-investment for long-term growth, financial deleveraging and sustainable shareholder returns.
2023 adjusted operating cash conversion of 106%.
Our 2026 financial targets
At our November 2023 Capital Markets Day (CMD), Elementis set out ambitious financial targets:
Adjusted operating profit margin of 19%+
2023: 15%
Three-year average operating cash conversion above 90%
2023: 77%
Return on capital employed (excluding goodwill) above 20%
2023: 15%
Delivery of the targets is underpinned by the efficiency and growth platforms announced at the CMD, delivering $30 million of annual savings by 2025 and $90 million of above market revenue growth by 2026.
Access our CMD presentation Access our latest annual report
